Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employee Benefits topic
No spam. Unsubscribe anytime.
Council approves pickup for Tier 2 public-safety retirement and considers 401(k) match for other employees
Summary
Council approved Resolution 25-23 designating the city's pickup of Tier 2 public-safety retirement contributions and reviewed staff recommendations for a 401(k) employer match for other employees; staff estimated the first-year pickup cost at about $70,000 and provided participation-cost scenarios for the match.
South Ogden city staff asked the council to approve updates to the personnel policy and to a pair of resolutions covering retirement benefits. The council approved Resolution 25-23 to designate the city pickup of Tier 2 public-safety and firefighter retirement contributions and discussed a proposed employer match for employees not eligible for the Tier 2 pickup.
Summer, the assistant city manager, told the council the initial cost for picking up Tier 2 public-safety and firefighter contributions would be "about $70,000 a year." She also explained staff recommended designating the full 4.73% pickup for the year, but that designation is irrevocable and cannot be reduced in the future without further action. On the employer-match proposal for 401(k) contributions, staff estimated a maximum fiscal exposure of about $165,000 a year if every eligible employee contributed 6% and the city matched 3%, and offered a middle estimate of $68,000 to $77,000 based on projected participation increases.
Councilmembers discussed vesting, URS limitations, and treatment of post-retiree employees. Staff said URS cannot implement a vesting schedule and that offering a vesting structure would require using a different retirement vendor for those matched dollars. The council approved the resolution and procedural policy updates on roll-call votes; staff said the pickup amount for the year is included in the current budget.
